Arbitration Amendment Act, 2021: A Right Step Towards Pro-Arbitration Jurisprudence In India?

The Government of India has undertaken many measures to ensure improved ranking in the 'Ease of Doing Business Index'. Due to such efforts, India now stands at 63rd position in World Bank's Report on Doing Business 2020¹ from a previous standing at 130th position. Enforceability of contracts along with the streamlined dispute resolution mechanism is a significant determining factor for ease of doing business in a country and to make it an attractive destination for investments as well. Realizing the importance of the aforesaid, multiple changes have been introduced in India's arbitration regime in last decade.

As a result, increasing number of judicial decisions and legislative measures have been trying to exude the pro-arbitration approach of the Government of India. With a view to make India a hub for international commercial arbitration, the Central Government notified the Arbitration and Conciliation (Amendment) Act, 2021 ("Amendment Act").²